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Joshua, Lawyer

Category: UK Property Law

Satisfied Customers: 24600

Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice

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I SERVED A SECTION 21 WITH THREE MONTHS NOTICE THEN POSEESION

Resolved Question:

I SERVED A SECTION 21 WITH THREE MONTHS NOTICE THEN POSEESION ORDER FOLLOWED VIA THE COURT BECAUSE THE DEPOSIT WAS NOT IN THE DEPOSIT WAS NOT LODGED WITH THE DISPUTE SERVICE TDS.GB.COM AT THE TIME OF SERVING THE SECTION 21 NOTICE ALTHOUGH ITV WAS WHEN THE POSSESION ORDER WAS FILED THE COURT THREW MY CASE OUT IN FAVOUR OF MY TENANTS WHAT DO I DO NOW ?

Thanks for your question. Please kindly RATE my answer when you are satisfied

Joshua :

May I clarify something with you please? "...AT THE TIME OF SERVING THE SECTION 21 NOTICE ALTHOUGH ITV WAS WHEN THE POSSESION ORDER...

Joshua :

Could you confirm what ITV means in the above?

Customer:

sorry it should have read it not itv

Joshua :

Thanks. Was the deposit protected or not please? If not was there any reason or was it overlooked?

Customer:

the deposit was not protected unbeknown to me when the sec 21 was served itb waqs bought to my attention by a council housing officer who said i need to put it in a scheme before the possesion notice is served which i did

Joshua :

Thanks. Did you have an agent who failed to lodge it or do you manage the rental?

Customer:

i manage the rental on this property

Joshua :

Thanks. Finally are the tenants in arrears or are they up to date? Presumably they are refusing to move out voluntarily?

Customer:

they are up to date the council has i believe offered properties but they say its to expensive to move even though i gave them a good reference

Joshua :

Thanks. Finally Am I correct that you are broadly familiar with the deposit protection requirements or would you like me to first go over what these are before I continue?

Customer:

Yes i am

Joshua :

Thanks. Sweeping changes were made to the largely failed attempt to bring in deposit protection requirements by the Localism Act in the tenants favour. The net effect is to levy a substantial penalty on landlords that fail to protect a deposit in that no s21 notice can be serve on a tenant now where a deposit has not been protected within 30 days of receipt. As a consequence of not protecting the deposit you can now only serve a valid s21 notice where:

either the deposit has been returned to the tenant in full or with such deductions as are agreed between the parties

or an application to the Court has been made and has been determined by the Court, withdrawn or settled by agreement between the parties.

Joshua :

The tenants can also claim an amount up to three times the deposit in compensation. However one of the biggest issues for a landlord is the inability to serve a s21 notice until one of the above is complied with.

Joshua :

Accordingly you really have two choices as to how to proceed. The first is return the deposit to them in the hope that they will accept this by banking your cheque or confirming they accept it or protecting your deposit and send all the protection documentation to the tenant and ask them to confirm that they accept the position.

Joshua :

If the tenant is intent on delaying as long as possible they may refuse to accept the deposit and force an application by you or them to the court to determine the matter. This can obviously delay you being able to issue a s21 notice for months whilst the court application is determined. It can be no small matter for the landlord to say the least.

Joshua :

You can still issue a s8 notice but if they are not in rent arrears then this is not likely to be useful to you.

Joshua :

Once the tenants have accepted either one or the other option as above you can then serve a valid s21 notice but unfortunately have to serve a new one which entails giving them 2 clear months notice again.

Joshua :

The position is far from ideal whichever way it is looked at unfortunately following the Localism Act and landlords find themselves at a considerable disadvantage by failing to protect the deposit which can be done quite innocently.

Customer:

ok i understand the jist of it all and thank you for your patience in this matter

Joshua :

Your first stage is to decide whether you prefer to return the deposit or protect it and which is likely to be more readily accepted by the tenants. This is not an easy decision in itself. Once you have evidence of acceptance be it a banked cheque by the tenants or written acceptance of your protection documentation then you can issue a s21 notice and proceed with fresh possession proceedings if necessary. Alternatively you can reach an agreed settlement with the tenants for them to leave voluntarily.

Joshua :

I am sorry I do not have something more positive I can relate to you.

Joshua :

If I can assist any further as the situation develops please do not hesitate to let me know.

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